LEADING IN THE NEW

Compressive disruption: Learn to thrive under pressure

TRADITIONAL ASSET-HEAVY
ORGANIZATIONS: ARE THEY
SAFE FROM DISRUPTION?

While seemingly stable and immune to “big bang” disruptions, we uncovered that many slow-moving industries are experiencing a gradual and dangerous “compressive disruption.” It erodes operating profits and revenues and is incredibly difficult to spot.

Find out how to recognize compressive disruption’s phases, and turn its forces into fuel that ignites innovation. That way, you can be a disruptor, not the disrupted.

DON’T BE BLINDED BY THE PAST

It’s incredibly difficult to detect. But missing – or worse, ignoring – the warning signs of compressive disruption can come with a price: the profitability flatline.

STABILITY

- makes for a false sense of security

Reliance on significant barriers to entry. Barriers to entry have traditionally sheltered incumbents in asset-intensive businesses from sudden and radical change—and any changes have been slow.

SIZE

- turns out, it doesn’t matter

Unwillingness to restructure or divest old assets. Many companies become tied down by expensive or underused assets, including intangible assets such as contractual agreements or legacy brands.

LONGEVITY

- can be an innovation buzz kill

Inability to embrace new business models. Large incumbents with a long track record of success in their core businesses often overestimate the lifespan of their business models, and underinvest in building new ones.

Companies are failing

New product adoption is slow

Rooftop solar has taken 50 years to reach a 10% market share. In 2015 only 0.6% of U.S households had rooftop solar.

Automotive revenue growth has slowed to 1% CAGR compared with 35% growth from 2009 to 2015. Yet, the rise of ride-sharing revenue is expected to spike 21.8% CAGR from 2017 to 2021.

When cash flow is restricted, companies have no headroom to invest outside their core
businesses. The sooner they find where they are stuck, the easier it is to re-focus on
core business renewal and free up capital to invest in innovation.

ABOUT ACCENTURE RESEARCH

Accenture Research shapes trends and creates data-driven insights about the most pressing issues global organizations face. Combining the power of innovative research techniques with a deep understanding of our clients’ industries, our team of 250 researchers and analysts spans 23 countries and publishes hundreds of reports, articles and points of view every year. Our thought-provoking research—supported by proprietary data and partnerships with leading organizations such as MIT and Singularity—guides our innovations and allows us to transform theories and fresh ideas into real-world solutions for our clients.